Economist Surjit Bhalla is out with a book on currency devaluation and the IMF isn’t going to like what it says about currency devaluation:

“This single policy can change a country’s destiny, more so than the 10 policies constituting the Washington Consensus,” he writes.

He estimates that the Chinese yuan is 45% undervalued. He says the currency world is greatly misaligned and global leaders need a way to sort out the distortions.

To me, it’s clear that policymakers understand the benefits of a weak currency and that more will turn to interventionist policies. It won’t be a smooth ride.